Regional apartment shortage worsens

Construction of apartments in the Capital Region has really dropped off.

In 2010, cities and towns in the area issued building permits for just 141 units in multifamily buildings, according to data from the census. That’s down from 906 units as recently as 2007 — and 1,133 in the boom year of 2007.

That’s happening just as demand for units is rising, mostly because the economy is keeping many renters from buyers and forcing some homeowners out of their home.

Meanwhile, the area continues to have one of the tightest rental vacancy markets.

In fact, for the third quarter of 2010, the area’s vacancy rate of 6.3 percent put it in a tie for 10th-tightest rental market among the nation’s most populous metropolitan areas.

Higher demand + reduced supply = higher rents.

(Photos of the Paddocks at Saratoga apartments by John Carl D’Annibale/TU)